Visit your Relatives Wednesday

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Good Morning and Welcome to the XJO Wednesday Thread

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News for Today (AEST)




The XJO continued higher on Tuesday
Spread narrowed, and volume increased - which would generally suggest selling pressure and infer weakness, although it should be noted that volume remained below average overall (so if there was selling pressure, the amount of volume suggests it was not particularly serious).  
However that said, as price was moving through the double lines of potential resistance above, it may be that supply was being absorbed as it pushed up through that level (and that in turn may explain the reduced spread).
It seems that recently there is always another possible excuse or reason why we have to wait for some sort of confirmation bar, each time price continues higher.  Anyway we'll probably know the answer tomorrow sometime - an upbar or test would suggest the absorption scenario, and a decent sized downbar would suggest the supply theory.  FWIW, I lean slightly towards the absorption scenario, although I am not wedded to it.









Good Trading and Investing

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